| Lonmin Plunges on Funding Concern; Plans to Cut 6,000 Jobs | |
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The world’s No. 3 producer will announce before November whether it will review its capital structure and how it will refinance debt facilities, Chief Executive Officer Ben Magara said on a conference call Friday. It may cut about 16 percent of its staff and contractor base, while closing shafts, he said. The shares dropped as much as 17 percent. Companies including Anglo American Platinum Ltd. and Impala Platinum Ltd., the two biggest operators, are reducing costs as profit margins shrink with tumbling metal prices. Platinum has been in a bear market for two years, and South African producers are losing money on about three of every four ounces they mine. “At these prices, it will be difficult for Lonmin to meet some of its covenants,” Sibonginkosi Nyanga, an analyst at Imara S.P. Reid (Pty) Ltd. in Johannesburg, said by phone. “If they decide to sell shares, the market will punish them.” Lonmin intends to close its Hossy and Newman shafts and idle three others, reducing annual output by 100,000 ounces, the Johannesburg-based company said in a statement. The planned job cuts include staff who took voluntary redundancy packages offered in May, Lonmin said. Significant Pain“Losing jobs is not pleasant, but everyone is having to take significant short-term pain,” Magara said on the call. |
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Lonmin PLC.
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PRODUCER |
CODE : LMI.L |
ISIN : GB0031192486 |
CUSIP : 54336Q203 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Lonmin is a gold and platinum producing company based in United kingdom. Lonmin produces gold, platinum, palladium and rhodium in South Africa, and holds various exploration projects in Canada, in Gabon, in South Africa and in Tanzania. Its main assets in production are PANDORA JV, LIMPOPO, MARIKANA, EASTERN PLATINUM (EPL) and KAREE MINE (WPL) in South Africa and its main exploration properties are LUWUMBU in Tanzania, PANTON in Australia, MESSINA PLATINIUM and WESTERN PLATINUM in South Africa and WINDY LAKE in Canada. Lonmin is listed in Germany, in United Kingdom and in United States of America. Its market capitalisation is GBX 21.4 billions as of today (US$ 25.0 billions, € 22.0 billions). Its stock quote reached its highest recent level on August 28, 2009 at GBX 9 964.65, and its lowest recent point on June 28, 2019 at GBX 75.60. Lonmin has 282 784 288 shares outstanding. |